By Peter Egwuatu

Mr. Rahul Colaco is the Managing Director of FrieslandCampina WAMCO Plc. In an interview with select journalists before the company’s 60th anniversary in Nigeria which was held penultimate weekend in Lagos, he spoke about the challenging operating environment in the country and how Friesland Campina WAMCO has weathered the storm over the years. Other issues discussed was the local content policy of the Federal Government , some of the company’s Corporate Social Responsibility, CSR and the future prospect of the company amongst others. Excerpts:

What is Friesland doing with regard to the Federal Government’s local content initiative?

Rahul Colaco, MD, Friesland Campina WAMCO

We support the Federal Government’s initiative on local content. About 90 per cent of our raw materials are sourced locally. We want to further increase our local content and support the Federal Government’s initiative to grow the agricultural sector. FrieslandCampina WAMCO pioneered the Dairy Development Programme (DDP) in August 2010.

This is gradually developing into a full national programme as the company is dedicated to making the initiative a success by ensuring the transfer of technology know-how on milk production to Nigerian farmers. The company plans to further train and consult with farmers, with the support of the government.

What has been the challenges facing your company and the manufacturing industry in general?

There are many challenges facing the company and the manufacturing industry. We have infrastructure challenges like power, bad roads, security, competition, smuggling, exchange rate, etc. But we have been trying as a company to surmount some of these challenges. FrieslandCampina WAMCO Nigeria Plc will maintain its No. 1 position as the nation’s leading milk manufacturing company by investing in its people, capacity expansion projects and by being an excellent corporate citizen.

How is FrieslandCapina impacting on the community?

We are good corporate citizen. We have impacted positively on the community where we operate. We embark on structured programs that improve nutrition and enhance the lives of many Nigerians. FrieslandCampina WAMCO has over the years proven itself to be a socially responsible company and is perceived as an excellent Corporate Citizen by stakeholders. At WAMCO, we believe CSR is an efficient strategy for a successful human and society development, especially for developing countries, like Nigeria.

Our CSR programme is not only structured to address the developmental needs of communities but also to promote corporate governance, which is translated in our annual accounts, employee relations, business relations, etc. We have embarked on structured programmes that improve nutrition and enhance the lives of many Nigerians. Some projects we have carried out include: School Adoption: Donation of educational materials to facilitate learning in public schools.

Support to 18 adopted schools during events such as inter-house sports, Prize Giving Day, etc;   Provision of sustainable solar powered potable water to needy communities- 41 solar powered bore wells as of 2013; Funding research in Food Science in Higher Institutions. 6 Tertiary Institutions enjoy this benefit; Financial Award to Best Graduating Student in Food Science in the 6 selected Tertiary Institutions; Donation of products to charity homes and orphanages nationwide – 30 Homes

What is the current financial performance of the company like?

The company’s commercial and financial performance remained satisfactory in spite of the harsh business environment. Turnover increased by 5.14 per cent from N120.26 billion in 2013 to N126.44 billion in 2014. Profit Before Tax (PBT) however decreased by 14.55 per cent from N19.31 billion to N16.50 billion as a result of significant increase in the cost of dairy raw materials, which was not fully passed on to consumers; increased operating expenses; and the write-off of Export Expansion Grant already taken into profit in the previous year.

Can you tell us more about Friesland Campina WAMCO?

FrieslandCampina WAMCO Nigeria Plc has been a necessary part of most Nigerian homes since 1954 through its iconic brand Peak Milk. It is a multinational, dairy manufacturing company and an affiliate of Royal FrieslandCampina of The Netherlands, one of the largest dairy cooperatives in the world. “We are the makers of Peak, Three Crowns and Friso brands of milk in Nigeria. Over the years, we have maintained leadership of the Evaporated milk market with the Peak brand. Guided by an inspiring mission, nourishing Nigeria with quality dairy nutrition, we are unwavering in the provision of quality, nutritious milk products for Nigerians” said Ore Famurewa, Corporate Affairs Director, FrieslandCampina WAMCO.

Why are you marking the 60th anniversary of the company in a special way?

60 years in the life of a man is not a joke, so doing business in Nigeria for 60 years is not easy. FrieslandCampina WAMCO Nigeria Plc makers of Peak and other milk brands, celebrates 60 years of delivering consistent quality dairy nutrition to its teeming loyal consumers residing in East, West, North and South of Nigeria.

Over the last 60 years, Peak has continued to be strong throughout the several changes in the market. We attribute our success to two things. First, our focus is to consistently nourish Nigerians with quality dairy nutrition in order to reach their Peak. Second, we continually explore ways of standing out of the crowded shelf and touching every part of the consumers’ lives.

Peak has won industry recognition as an innovative and trendsetting brand that delivers superior dairy nutrition across life-stages. The brand succeeds because it always connects with its consumers, supports its key business partners and helps the general public to pursue their aspirations and reach for their Peak. To surprise loyal consumers, based on research and their expectation, Peak Evaporated Milk now comes in new packaging as well as a lid that opens and closes easily. It is called ‘Peak Easy Open’.